Corrpro announces improving financial results for fiscal 1996 second quarter compared to the first quarter.MEDINA, Ohio--(BUSINESS WIRE)--Nov. 10, 1995--Corrpro Companies, Inc. (NYSE - CO) today reported results for its fiscal 1996 second quarter which ended September 30, 1995. Revenues for the second quarter totaled $38.0 million, an increase of 22.8% over the $31.0 million for the prior year second quarter. Excluding the impact of two acquisitions which occurred in the second and third quarters of fiscal 1995, revenues increased 9.6%. The Company incurred a net loss of $1.0 million, or 17 cents per share during the second quarter, compared with net income of $1.8 million or 26 cents per share in the prior year period. Revenues for the six months ended September 30, 1995 totaled $71.5 million, an increase of 24.4% over the $57.5 million in the prior year six month period. Excluding the impact of two acquisitions which occurred in the second and third quarters of fiscal 1995, revenues increased 3.1%. The Company incurred a net loss of $4.2 million, or 70 cents per share during the six month period, compared with net income of $3.0 million or 47 cents per share in the prior year period. The second quarter results represent an improvement over those achieved during the first quarter as the Company is beginning to realize the benefits of the corrective actions it has been taking over the past several months. The net loss for the second quarter is primarily attributable to low gross profit margins for both service and product sales. Gross margins on service sales are down between years, but such margins have started to show improvement. Service margins increased to 27.3% for the second quarter compared to 21.3% for the first quarter. Gross margins on product sales continue to be adversely impacted by extremely low gross margins at the Company's Corrtherm foundry as well as higher material costs (on a year over year basis). The gross profit margins relating to Corrtherm continue to be extremely weak and inconsistent as a result of start-up issues. These issues have resulted in productivity problems, excess operating expenses and significant product rework. Product margins decreased to 15.5% for the second quarter compared to 22.2% for the first quarter primarily due to the impact of Corrtherm. The Company continues to take corrective cost and pricing actions with respect to both service and product sales, with particular emphasis on the improvement of the product margins. Joseph W. Rog, Chairman of the Board, President and Chief Executive Officer, stated, "As we expected, the Company achieved a much smaller loss than the prior quarter. We continue to make progress in our efforts to return to profitability and have remained sharply focused on improving margins and reducing operating expenses. During the second quarter we began to see improvements in our service gross margins. In addition, we are starting to realize the benefit of our cost reduction measures, as operating expenses have declined to 22.6% of revenue during the second quarter compared to 29.7% in the first quarter (excluding the impact of the $1.5 million charge for litigation and certain other unusual expenses recorded in the first quarter). Gross margins at our Corrtherm foundry operation continue to be extremely weak; however, we are taking corrective actions to improve productivity, quality and efficiency at this location." Corrpro, headquartered in Medina, Ohio, and with over 50 offices worldwide, is the leading provider of corrosion control engineering services, systems and equipment to the infrastructure, environmental and energy markets throughout the world. Corrpro is the U.S. and Canadian market share leader of cathodic protection systems applied to such structures as bridges, above-ground and underground storage tanks, parking garages, electric power plants, oil and gas pipelines, transit systems, water treatment systems, offshore oil rigs and ships. Corrpro is also the U.S. market share leader in rectifiers, a key power supply component in cathodic protection systems, and is the worldwide leader in maritime cathodic protection, corrosion monitoring systems, and manufacturing of anodes for cathodic protection systems. -0-
CORRPRO COMPANIES, INC.
Consolidated Income Statement Data
(In Thousands, Except Share and Per Share Amounts)
(UNAUDITED)
Three Months Ended Six Months Ended
September 30, September 30,
_________________ _________________
1995 1994 1995 1994
______ ______ ______ ______
Revenues:
Engineering &
Construction Services $ 18,639 $ 16,821 $ 32,839 $ 29,645
Product Sales 19,375 14,144 38,652 27,820
______ ______ ______ ______
38,014 30,965 71,491 57,465
Cost of Sales:
Engineering & Construction
Services 13,559 11,141 24,738 18,147
Product Sales 16,363 9,966 31,366 20,689
______ ______ ______ ______
29,922 21,107 56,104 38,836
______ ______ ______ ______
Gross Profit 8,092 9,858 15,387 18,629
Selling, General &
Administrative Expenses 8,587 6,957 20,014 13,382
______ ______ ______ ______
Operating Income (Loss) (495) 2,901 (4,627) 5,247
Interest Expense (791) (118) (1,356) (330)
Other Income (Expense) (15) 47 2 38
______ ______ ______ ______
Income (Loss) Before Taxes (1,301) 2,830 (5,981) 4,955
Provision (Benefit) for
Income Taxes (258) 1,061 (1,793) 1,935
______ ______ ______ ______
Net Income (Loss) $ (1,043) $ 1,769 $ (4,188) $ 3,020
______ ______ ______ ______
______ ______ ______ ______
Net Income (Loss) Per
Share $ (.17) $ .26 $ (.70) $ .47
______ ______ ______ ______
______ ______ ______ ______
Weighted Average
Shares 5,979 6,849 5,967 6,474
______ ______ ______ ______
______ ______ ______ ______
CORRPRO COMPANIES, INC.
Consolidated Balance Sheet (Unaudited)
(In Thousands)
September 30, March 31,
1995 1995
__________ __________
ASSETS
Current assets:
Cash $ 1,067 $ 1,385
Accounts receivable, net 38,337 34,930
Inventories 20,072 18,304
Other current assets 6,698 6,895
__________ __________
Total current assets 66,174 61,514
Property, plant and equipment, net 21,320 21,385
Other assets 28,091 27,423
__________ __________
TOTAL ASSETS $ 115,585 $ 110,322
__________ __________
__________ __________
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion, long-term debt $ 2,615 $ 2,322
Other borrowings and notes payable 523 273
Accounts payable 17,397 15,449
Other accrued expenses 7,218 6,204
__________ __________
Total current liabilities 27,753 24,248
Long-term liabilities:
Long-term debt, net of current
portion 31,447 25,869
Deferred long term FIT 82 78
__________ __________
Total liabilities 59,282 50,195
Minority interest 4,123 4,067
Total shareholders' equity 52,180 56,060
__________ __________
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
$ 115,585 $ 110,322
__________ __________
__________ __________
CORRPRO COMPANIES, INC.
Consolidated Statement of Cash Flows
(Unaudited, In Thousands)
Six Months Ended September 30,
_____________________________
1995 1994
__________ __________
Cash flows from operating
activities:
Net income (loss) $ (4,188) $ 3,020
Adjustments to reconcile net
income (loss) to net cash
used for operating activities (824) (9,572)
__________ __________
Net cash used for operating
activities (5,012) (6,552)
Net cash used for investing
activities (1,591) (8,678)
Net cash provided by financing
activities 6,263 15,704
Effect of changes in foreign currency
exchange rates 22 (67)
__________ __________
Net increase (decrease) in cash (318) 407
Cash and cash equivalents at beginning
of period 1,385 1,667
__________ __________
Cash and cash equivalents at end
of period $ 1,067 $ 2,074
__________ __________
__________ __________
CONTACT: Corrpro Companies, Inc., Medina Robert M. Adamov, 216/723-5082 |
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